CAIRO COMMUNICATIONS SPA (CAI.MI) Stock Fundamental Analysis
BIT:CAI - Euronext Milan - IT0004329733 - Common Stock - Currency: EUR
Overall CAI gets a fundamental rating of 4 out of 10. We evaluated CAI against 65 industry peers in the Media industry. Both the profitability and the financial health of CAI get a neutral evaluation. Nothing too spectacular is happening here. CAI is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
CAI had positive earnings in the past year.
CAI had a positive operating cash flow in the past year.
CAI had positive earnings in each of the past 5 years.
Each year in the past 5 years CAI had a positive operating cash flow.
1.2 Ratios
CAI's Return On Assets of 1.99% is in line compared to the rest of the industry. CAI outperforms 53.73% of its industry peers.
The Return On Equity of CAI (6.52%) is comparable to the rest of the industry.
CAI's Return On Invested Capital of 5.96% is fine compared to the rest of the industry. CAI outperforms 61.19% of its industry peers.
CAI had an Average Return On Invested Capital over the past 3 years of 6.00%. This is below the industry average of 8.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 6.52% | ||
| ROIC | 5.96% |
ROA(3y)2.24%
ROA(5y)2%
ROE(3y)7.68%
ROE(5y)7.17%
ROIC(3y)6%
ROIC(5y)5.71%
1.3 Margins
CAI has a Profit Margin (2.42%) which is in line with its industry peers.
CAI's Profit Margin has declined in the last couple of years.
CAI's Operating Margin of 6.04% is in line compared to the rest of the industry. CAI outperforms 49.25% of its industry peers.
CAI's Operating Margin has declined in the last couple of years.
CAI has a Gross Margin of 70.73%. This is in the better half of the industry: CAI outperforms 73.13% of its industry peers.
CAI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.04% | ||
| PM (TTM) | 2.42% | ||
| GM | 70.73% |
OM growth 3Y19.59%
OM growth 5Y-3.56%
PM growth 3Y28.99%
PM growth 5Y-5.81%
GM growth 3Y-2.73%
GM growth 5Y-1.63%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CAI is destroying value.
The number of shares outstanding for CAI remains at a similar level compared to 1 year ago.
The number of shares outstanding for CAI remains at a similar level compared to 5 years ago.
Compared to 1 year ago, CAI has an improved debt to assets ratio.
2.2 Solvency
CAI has an Altman-Z score of 1.38. This is a bad value and indicates that CAI is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.38, CAI perfoms like the industry average, outperforming 50.75% of the companies in the same industry.
The Debt to FCF ratio of CAI is 2.54, which is a good value as it means it would take CAI, 2.54 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.54, CAI is doing good in the industry, outperforming 77.61% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that CAI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.31, CAI is in the better half of the industry, outperforming 70.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.54 | ||
| Altman-Z | 1.38 |
ROIC/WACC0.89
WACC6.7%
2.3 Liquidity
CAI has a Current Ratio of 0.89. This is a bad value and indicates that CAI is not financially healthy enough and could expect problems in meeting its short term obligations.
CAI has a Current ratio (0.89) which is comparable to the rest of the industry.
CAI has a Quick Ratio of 0.89. This is a bad value and indicates that CAI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.85, CAI perfoms like the industry average, outperforming 50.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.03% over the past year.
The Earnings Per Share has been decreasing by -8.57% on average over the past years.
The Revenue has decreased by -1.84% in the past year.
CAI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.00% yearly.
EPS 1Y (TTM)30.03%
EPS 3Y32.8%
EPS 5Y-8.57%
EPS Q2Q%29.29%
Revenue 1Y (TTM)-1.84%
Revenue growth 3Y2.73%
Revenue growth 5Y-3%
Sales Q2Q%-0.24%
3.2 Future
The Earnings Per Share is expected to grow by 5.63% on average over the next years.
Based on estimates for the next years, CAI will show a decrease in Revenue. The Revenue will decrease by -1.74% on average per year.
EPS Next Y21.43%
EPS Next 2Y8.56%
EPS Next 3Y5.63%
EPS Next 5YN/A
Revenue Next Year-2.13%
Revenue Next 2Y-2.1%
Revenue Next 3Y-1.74%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.20, the valuation of CAI can be described as reasonable.
Based on the Price/Earnings ratio, CAI is valued a bit cheaper than the industry average as 68.66% of the companies are valued more expensively.
CAI is valuated cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.57, which indicates a very decent valuation of CAI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CAI indicates a somewhat cheap valuation: CAI is cheaper than 76.12% of the companies listed in the same industry.
CAI is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.2 | ||
| Fwd PE | 8.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAI indicates a rather cheap valuation: CAI is cheaper than 86.57% of the companies listed in the same industry.
83.58% of the companies in the same industry are more expensive than CAI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.25 | ||
| EV/EBITDA | 3.38 |
4.3 Compensation for Growth
CAI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.48
PEG (5Y)N/A
EPS Next 2Y8.56%
EPS Next 3Y5.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.64%, CAI is a good candidate for dividend investing.
CAI's Dividend Yield is rather good when compared to the industry average which is at 4.64. CAI pays more dividend than 83.58% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, CAI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.64% |
5.2 History
On average, the dividend of CAI grows each year by 36.05%, which is quite nice.
Dividend Growth(5Y)36.05%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CAI pays out 100.84% of its income as dividend. This is not a sustainable payout ratio.
CAI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP100.84%
EPS Next 2Y8.56%
EPS Next 3Y5.63%
BIT:CAI (3/7/2025, 7:00:00 PM)
2.855
+0.02 (+0.71%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners8.73%
Inst Owner ChangeN/A
Ins Owners51.48%
Ins Owner ChangeN/A
Market Cap383.77M
Analysts84
Price Target2.75 (-3.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.64% |
Yearly Dividend0.23
Dividend Growth(5Y)36.05%
DP100.84%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.2 | ||
| Fwd PE | 8.57 | ||
| P/S | 0.26 | ||
| P/FCF | 4.25 | ||
| P/OCF | 3.01 | ||
| P/B | 0.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.38 |
EPS(TTM)0.28
EY9.81%
EPS(NY)0.33
Fwd EY11.67%
FCF(TTM)0.67
FCFY23.5%
OCF(TTM)0.95
OCFY33.17%
SpS10.98
BVpS4.07
TBVpS-3.25
PEG (NY)0.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 6.52% | ||
| ROCE | 6.9% | ||
| ROIC | 5.96% | ||
| ROICexc | 6.24% | ||
| ROICexgc | 30.89% | ||
| OM | 6.04% | ||
| PM (TTM) | 2.42% | ||
| GM | 70.73% | ||
| FCFM | 6.11% |
ROA(3y)2.24%
ROA(5y)2%
ROE(3y)7.68%
ROE(5y)7.17%
ROIC(3y)6%
ROIC(5y)5.71%
ROICexc(3y)6.41%
ROICexc(5y)6.08%
ROICexgc(3y)36.04%
ROICexgc(5y)34.94%
ROCE(3y)6.95%
ROCE(5y)6.62%
ROICexcg growth 3Y6.76%
ROICexcg growth 5Y-23.67%
ROICexc growth 3Y19.87%
ROICexc growth 5Y-8.8%
OM growth 3Y19.59%
OM growth 5Y-3.56%
PM growth 3Y28.99%
PM growth 5Y-5.81%
GM growth 3Y-2.73%
GM growth 5Y-1.63%
F-Score7
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 2.54 | ||
| Debt/EBITDA | 1.05 | ||
| Cap/Depr | 49.6% | ||
| Cap/Sales | 2.51% | ||
| Interest Coverage | 8.74 | ||
| Cash Conversion | 77.67% | ||
| Profit Quality | 252.66% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 1.38 |
F-Score7
WACC6.7%
ROIC/WACC0.89
Cap/Depr(3y)75.1%
Cap/Depr(5y)60.17%
Cap/Sales(3y)5.07%
Cap/Sales(5y)4.05%
Profit Quality(3y)155.03%
Profit Quality(5y)227.25%
High Growth Momentum
Growth
EPS 1Y (TTM)30.03%
EPS 3Y32.8%
EPS 5Y-8.57%
EPS Q2Q%29.29%
EPS Next Y21.43%
EPS Next 2Y8.56%
EPS Next 3Y5.63%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.84%
Revenue growth 3Y2.73%
Revenue growth 5Y-3%
Sales Q2Q%-0.24%
Revenue Next Year-2.13%
Revenue Next 2Y-2.1%
Revenue Next 3Y-1.74%
Revenue Next 5YN/A
EBIT growth 1Y26.38%
EBIT growth 3Y22.86%
EBIT growth 5Y-6.45%
EBIT Next Year111.04%
EBIT Next 3Y27.4%
EBIT Next 5YN/A
FCF growth 1Y-23.75%
FCF growth 3Y-0.96%
FCF growth 5Y-0.86%
OCF growth 1Y-16.25%
OCF growth 3Y3.87%
OCF growth 5Y1.51%